It's been 2 days since I have the children begin working in the surrounding area of the light elf settlement. At first, the Light Elves were a little apprehensive regarding the children. I can understand their stance. Think about it, a race of what appears to be some kind of demon/draconian elves magically appear right at your doorstep. I bet you too would feel some kind of way.
Of course, it was the young children who broke the ice. (What can I say, children we try to befriend anyone.) After seeing how young Light Elves treated the children as slightly older "children", the settlement began warming to them. In time, they will be able to integrate with the future clans of elves.